Crypto News – According to a court filing dated March 6, bankrupt cryptocurrency startups FTX and BlockFi have struck an in-principle agreement to settle all litigation and disputes for around $900 million.
BlockFi and FTX Settlement for $900 Million Solution
As per the agreement, BlockFi would be compensated $185.2 million for customer claims made against the debtors of FTX. Furthermore, a separate $689.3 million claim against Alameda Research for previous loans made to the now-defunct trade organization is scheduled to be obtained by the bankrupt lender. BlockFi is claiming a total of $874.5 million against FTX and Alameda Research.
Exactly $250 million of this settlement is labeled as a “secured claim,” meaning that BlockFi will get payment first when FTX’s bankruptcy is resolved. The exchange’s ability to pay its debts to clients and other creditors will determine what’s left. In exchange, BlockFi promises to support FTX’s bankruptcy plan and vote in favor of it, and in return, FTX will drop its settlement claims against the latter.
This negotiated agreement represents an excellent outcome for BlockFi and its customers – one better than could have been anticipated even on the effective date of the Plan. The agreement would ensure that money reserved for litigation with FTX is directed instead to customer distributions.
the company’s lawyers
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